Labor Law Q&A details

Chapter 2 Wages

Can the employer deduct the expenses arbitrary from my salary?

According to Paragraph 1, Article 43 of the Labor Standards Act, payment of wages shall be directly made in full to workers in currency. However, if prescribed by statutes or by a collective agreement, wages may partially be deducted or may be paid by means other than currency. In other words, the wage should be paid in cash, in full, on the payment date set by the employee directly.

Wages for employees are the source of livelihoods, so the law protects them from unilateral decisions by the employer. However, as in the above case, even if the employer deducts various expenses and pays the wages, there are some cases that employees may not be able to receive remedies. However, other than legal deductible expenses such as work income tax, resident tax, health insurance premium, national pension, employment insurance premium, etc. and union dues by collective agreement, in case of a workplace where there is a trade union, the employer cannot deduct any bonds or damages against employees from their wage. If there is an illegal deduction, you can get a remedy for the delayed payment of wage by submitting a petition to the competent Labor and Employment Ministry.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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